A fifth of UK consumers choose everyday service providers – such as mobile phone, utilities and broadband companies – solely based on the perks and benefits they offer, according to new research from Echo Managed Services.
The research, based on a nationally-representative sample of 1,000 UK adults, revealed that a quarter of all consumers are significantly impacted by the perks and benefits offered by businesses, with one in five remaining loyal to a provider for this reason.
Offering additional perks can also be beneficial for brand reputation as one in ten customers stated that these significantly improve their perception of a company, while 7% said they remember a brand based on the perks they offer. An additional 4% are only with a provider because of their perks offering.
However, a one-size-fits-all approach isn’t likely to suit all – the research also uncovered that up to 53% of consumers are immune to the perks that a company offers. Furthermore, 17% of customers explicitly said they found perks annoying and would rather not be offered these at all.
Commenting on the findings, Chris Cullen, head of sales and marketing at Echo Managed Services, said: ““When it comes to perks and benefits packages, personalisation is key. Getting a perks and benefits strategy right, and targeting the right customers with it, via the right channels and at the right time can be incredibly effective commercially – attracting new customers and strengthening the loyalty of existing ones, all while bolstering brand awareness, perception and recall. Evaluating key customer touch points, such as bills, and utilising customer behavioural data can really help here.
“However, while a large number of customers have said such packages appeal to them, half have said they’re unaffected by them. Therefore, whilst it’s crucial to understand customers as individuals and attune offerings accordingly, brands mustn’t put all their customer acquisition and retention efforts into shiny benefits packages, as ultimately, it’s the consistent delivery of great customer service which will build reputation and result in increased referrals in the long run. Taking note of this couldn’t be any more important for water companies than it is right now, with the market due to open up to competition in just a couple of months.”
For the full report, please visit: https://www.echo-ms.com/knowledge-centreesearch-resources/the-secrets-of-better-billing